Big Tech’s hunger for energy is evident from the east coast of Scotland. A wind farm located 12 miles offshore boasts 60 massive turbines with blades the size of an American football field. The developers of the Moray West project had initially claimed it could power 1.3 million homes once completed, before Amazon intervened.
In January, Amazon announced a deal to acquire over half of the site’s 880 megawatts of output, as part of its ongoing efforts to satisfy its insatiable energy needs. As major companies worldwide rush to build the infrastructure required for artificial intelligence, even remote Scottish wind farms have become crucial.
Last year in Europe, $79.4 million was invested in new data center projects, according to research firm Global Data. The demand is accelerating, with Microsoft recently announcing a $3.2 billion investment in data centers in Sweden. The company also plans to double its data center presence in Germany, with a $4.3 billion investment in AI infrastructure in France. Amazon is expanding its network of data centers in Germany with an $8.5 billion investment, and has dedicated $17.1 billion to Spain. Google is spending $1.1 billion on its Finnish data center to drive AI growth.
As tech giants race to build more data centers, there is growing concern about how to power them sustainably. Microsoft, Meta, and Google aim to achieve net zero emissions before 2030, while Amazon targets 2040. These companies have been securing renewable energy contracts with wind or solar companies, but the strain on electricity grids is pushing them to consider operating off-grid power systems.
Colm Shorten, senior director of data center strategy at JLL, notes that the industry recognizes the need for alternative energy sources as power demand rises. Server farms are exploring options like gas or diesel generators, as well as innovative technologies such as green hydrogen for “behind-the-wire” power supply.
Data centers require power to run algorithms and cool servers to prevent overheating. Initiatives like using liquid cooling instead of air are expected to save energy, but demand for power is projected to double by 2026 due to artificial intelligence, according to the International Energy Association.
Tech companies have been securing power purchase agreements (PPAs) for renewable energy contracts to reserve power from wind or solar sites. Companies like Meta and Google have funded solar and wind farms in Denmark and Norway, respectively. Microsoft recently signed a $10 billion clean power deal across Europe and the US, fueling the thriving PPA market in Europe.
Despite the growth of renewables, challenges arise as electricity grids become strained, particularly in Europe. The surge of renewable producers connecting to meet green transition demands poses a bottleneck. Industry leaders like Mark Zuckerberg and Sam Altman have warned about the need for breakthroughs to meet the energy demands of AI advancement.
